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FORTIFAI LTD — Management Reports 2022
Nov 27, 2022
64950_rns_2022-11-27_1bb089fe-4132-41cb-80a2-f0f1dfcd6d13.pdf
Management Reports
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ASX Announcement 28 November 2022
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----- Start of picture text ----- ASX CODE: MKLCAPITAL STRUCTUREShare Price (25/11/22) $0.031Shares on Issue (m) 209.7Market Cap $6.5mMAJOR SHAREHOLDERSPhilip Mayes 25.0%Phoenix Portfolios 10.4%Gamestar+ 8.9%BOARD & MANAGEMENTMichelle GutherieChairPhilip MayesManaging DirectorMegan BrownlowNon-Executive DirectorGabriele FamousNon-Executive DirectorIan HoggNon-Executive DirectorMelanie FletcherNon-Executive DirectorDavid ButoracNon-Executive DirectorAmy GuanChief Financial OfficerKaitlin SmithCompany SecretaryCONTACTT : +61 8 7200 3252E : [email protected]W : www.mightykingdom.comA : Lv4, 121 King William StAdelaide SA 5000P: PO Box 3106Rundle Mall SA 5000AustraliaACN: 627 145 260----- End of picture text -----
Chair’s Address to Shareholders
28 November 2022
On behalf of the Directors of Mighty Kingdom Limited, I would like to give an overview of the performance of our business during the year to 30 June 2022 and provide some insights into how the 2023 financial year is shaping up so far.
Throughout the year, we have built on already established relationships and partnered with some of the world’s largest media companies.
We expanded our partnership agreement with East Side Games Group to increase significantly the scale of collaboration between the two companies, which will see us publish original and licensed IP for a total of four games for worldwide release.
Our contract partnership with Mattel was extended through 2022, which provided the opportunity to continue to develop the successful mobile game, ‘Barbie Fashion Closet’. The extension ensured continued material ‘work for hire’ revenues.
We acquired the licence for the Australian film ‘Carnifex’ and partnered with Google LLC on a work for hire agreement and Lion Studios for a co-development partnership.
Whilst 2022 saw some success for the Company, we also experienced some growing pains. A rapid transition to Original IP initiatives and slower than expected increases in revenue (including from Conan Chop Chop) resulted in unsustainable cash burn. Strong initiatives have been put into place focussed on an operational ‘break even’ plan by the second half of FY2023.
In addition, Mighty Kingdom welcomed three new non-executive directors in August 2022. Ian Hogg, David Butorac and Melanie Fletcher have made an immediate impact in assisting with the Company’s current restructuring process. The new appointments complemented our existing Board of Directors and we look forward to benefiting from their extensive experience and exceptional track records in the entertainment industry.
The Board would like to thank the Mighty Kingdom team for its contribution and continued commitment to the Company over the past year. Thank you to our shareholders, players and partners for your ongoing support of our business in often very challenging times.
I would like to reiterate the Company’s commitment towards turning around what has been an unacceptable fall in shareholder value. We
Mighty Kingdom Ltd (ASX:MKL)
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ASX Announcement 28 November 2022
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intend to deliver on our restructuring process and I remain extremely excited about the journey ahead of us.
Michelle Guthrie
Chair
This announcement has been authorised for release by the Board of Mighty Kingdom Limited.
For further information, please contact:
Philip Mayes Duncan Gordon Managing Director Executive Director Mighty Kingdom Games Ltd Adelaide Equity Partners Ltd T: +61 8 7200 3252 T: +61 8 8232 8800 E: [email protected] E: [email protected]
ABOUT MIGHTY KINGDOM LIMITED
Since its formation in 2010, Mighty Kingdom has released over 50 games that have been downloaded more than 50 million times. These games have included collaborations with well known brands such as Shopkins, LEGO, Gabby’s Dollhouse, Peter Rabbit and more. Mighty Kingdom is one of the largest independent game developers in Australia, working with top tier entertainment and gaming companies including Disney, LEGO, Sony, Funcom, Rogue, and Snapchat. A diverse team of talented developers with significant experience across mobile and console platforms supports its clients to develop high-quality, successful games whilst driving Mighty Kingdom’s internal IP development.
Mighty Kingdom Ltd (ASX:MKL)
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